CC MINS 20090818 ADJ MINUTES
RANCHO PALOS VERDES CITY COUNCIL
ADJOURNED REGULAR MEETING
AUGUST 18, 2009
The meeting was called to order at 5:15 P.M. by Mayor Clark at Fred Hesse Community
Park, 29301 Hawthorne Boulevard, notice having been given with affidavit on file.
City Council roll call was answered as follows:
PRESENT: Long, Stern, Wolowicz, and Mayor Clark
ABSENT: None
Also present were Carolyn Lehr, City Manager; Carolynn Petru, Deputy City Manager;
Carol Lynch, City Attorney; Dennis McLean, Director of Finance/Information
Technology; Joel Rojas, Director of Community Development; Ara Mihranian, Principal
Planner; and Carla Morreale, City Clerk.
Also present were the following: Bruce Galloway, Real Estate Legal Counsel, Richards,
Watson & Gershon; and, Jeff Lewis, Chairman of the Planning Commission.
FLAG SALUTE:
The Flag Salute was led by City Clerk Morreale.
APPROVAL OF AGENDA:
Councilman Stern moved, seconded by Mayor Pro Tem Wolowicz, to approve the
agenda as presented.
Without objection, Mayor Clark so ordered.
Interview Applicants for the City Council Vacancy (306)
Mayor Clark introduced the item and provided a brief overview of the process to be
followed for the interview of applicants for the City Council vacancy.
City Council conducted interviews of the following applicants for the City Council
Vacancy: Peggi Collins, Kenneth J. Dyda, Kevin Biggers, Melvin W. Hughes, Frank
Lyon, Barbara Dye, Robert Lyon, William Gerstner, and Jon S. Cartwright.
APPROVAL OF AGENDA:
City Council Minutes
August 18, 2009
Page 1 of 11
Mayor Pro Tern Wolowicz requested that Item No. 14 (Filling the Vacancy on the City
Council) be moved to follow immediately after the Consent Calendar and Item 15
(Repeal of Ordinance No. 490) before Item 13 (Appeal of the Planning Commission's
Approval of the Marymount College Facilities Expansion Project).
Council discussion ensued regarding the reordering of the agenda.
Councilman Stern moved, seconded by Mayor Clark, to reorder the agenda so that the
following items are considered after the Consent Calendar: Item No. 15 (Repeal of
Ordinance No. 490), Item No. 12 (Terranea Resort and Spa: Revision "L" to Conditional
Use Permit No. 215), Item No. 14 (Filling the Vacancy on the City Council), and Item
No. 13 (Appeal of the Planning Commission's Approval of the Marymount College
Facilities Expansion Project).
Craig Mueller, Rancho Palos Verdes, stated that the new Council Member should be
selected before hearing the TOT and Marymount items.
The motion passed on the following roll call vote:
AYES: Stern, Wolowicz, and Mayor Clark
NOES: Long
ABSENT: None
RECESS TO CLOSED SESSION:
At 7:10 P.M., the City Council recessed to Closed Session to hold a conference with
Real Property Negotiators.
RECONVENE TO OPEN SESSION:
At 7:47 P.M., the City Council reconvened to Open Session.
MAYOR'S ANNOUNCEMENTS:
Mayor Clark announced the recent passing of Elfin Vanderlip and provided a
presentation of some of the highlights of her life.
Nikki Tennant, District Director for Assemblywoman Lowenthal, presented a certificate
from Senator Rod Wright commemorating the State Senate Adjournment in memory of
Elfin Vanderlip on July 23, 2009, and a certificate from Assemblywoman Lowenthal
commemorating the State Assembly Adjournment in her memory on August 17, 2009.
RECYCLE DRAWING:
Mayor Clark announced Recyclers of the Month from the August, 2009 City Council
meeting: Philip Z. Chen and Mildred Pachenko. He indicated that all winners receive a
City Council Minutes
August 18, 2009
Page 2 of 11
check for $250 representing a year of free refuse service and urged everyone to
participate in the City's Recycling Program.
PUBLIC COMMENTS:
None.
CITY MANAGER REPORT:
Director of Finance/IT McLean provided a brief status update report regarding the State
Budget.
NEW BUSINESS:
APPROVAL OF CONSENT CALENDAR:
Councilman Stern requested that a couple of minor changes be made to Item No. 7
(Approval of City Council Policy No. 42 Regarding the Form of Staff Recommendations
to the City Council). He stated that the second paragraph under the Background should
read "Staffs practice of deference to the Planning Commission has deprived the City
Council and members of the public of the professional opinion of City staff and caused
some confusion." He stated that in the same paragraph, the second line from the
bottom should read " ... or Advisory Board still should attend the Council Meeting."
Mayor Pro Tem Wolowicz commented that Item No. 4 (Street Improvements on
Hawthorne Boulevard, Palos Verdes Drive West, and Palos Verdes Drive South) has
occurred as a result of applications that staff has made to obtain Federal funding.
Mayor Pro Tem Wolowicz moved, seconded by Councilman Stern, to approve the
Consent Calendar, as amended.
The motion passed on the following roll call vote:
AYES: Long, Stern, Wolowicz, and Mayor Clark
NOES: None
ABSENT: None
Motion to Waive Full Reading
Adopted a motion to waive reading in full of all ordinances presented at this meeting
with consent of the waiver of reading deemed to be given by all Council Members after
the reading of the title.
Approval of the Minutes (301)
City Council Minutes
August 18, 2009
Page 3 of 11
Approved the Minutes of the June 18, 2009 Adjourned Regular Meeting and the July 7,
2009 Adjourned Regular Meeting.
FY08-09 Continuing Appropriations & Fiscal Year-End Budget Adjustments (602)
1) ADOPTED RESOLUTION NO. 2009-59, A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF RANCHO PALOS VERDES, AMENDING RESOLUTION NO. 2008-
47, THE BUDGET APPROPRIATION FOR FY08-09, TO REDUCE THE BUDGET FOR
THE APPROVED CONTINUING APPROPRIATIONS; 2) ADOPTED RESOLUTION
NO. 2009-60, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO
PALOS VERDES, AMENDING RESOLUTION NO. 2009-40, THE BUDGET
APPROPRIATION FOR FY09-10, TO INCREASE THE BUDGET FOR THE
APPROVED CONTINUING APPROPRIATIONS; and, 3) ADOPTED RESOLUTION NO.
2009-61, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO
PALOS VERDES, AMENDING RESOLUTION NO. 2008-47, THE BUDGET
APPROPRIATION FOR FY08-09, TO ADJUST THE BUDGET IN THE GENERAL
FUND, THE STREET MAINTENANCE FUND, AND THE RPV TV FUND.
Approve Program Supplement Agreement No. 009-N for Street Improvements on
Hawthorne Boulevard, Palos Verdes Drive West (PVDW) and Palos Verdes Drive .
South (PVDS) (1404)
1) Approved Program Supplement Agreement No. 009-N for street improvements on
Hawthorne Boulevard, PVDW, and PVDS; and, 2) ADOPTED RESOLUTION NO. 2009-
62, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES, ADMINISTERING AGENCY-FEDERAL PROGRAM SUPPLEMENT
AGREEMENT NO. 009-N FOR FUNDING OF THE ARTERIAL STREET
IMPROVEMENTS ON HAWTHORNE BOULEVARD, PALOS VERDES DRIVE WEST,
AND PALOS VERDES DRIVE SOUTH RESURFACING PROJECT AND
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE AGREEMENT.
Adoption of Ordinance No. 496 — East Tract 16540 Portuguese Bend Club Zone
Change (Case No. ZON2009-00053) (1802)
ADOPTED ORDINANCE NO. 496, AN ORDINANCE OF THE CITY OF RANCHO
PALOS VERDES, APPROVING A "CLEAN-UP" ZONE CHANGE FOR EAST TRACT
16540 — PORTUGUESE BEND CLUB —TO MAINTAIN CONSISTENCY WITH THE
CITY'S LOCAL COASTAL SPECIFIC PLAN AND TO CHANGE THE ZONING OF
CERTAIN PORTIONS OF SPECIFIC PROPERTIES THAT ARE ZONED SINGLE—
FAMILY RESIDENTIAL (RS-2) OR DUAL-ZONED SINGLE-FAMILY RESIDENTIAL
(RS-2 AND RS-5) TO SINGLE-FAMILY RESIDENTIAL (RS-5) WITH NO CHANGES
TO PORTIONS OF LOTS THAT ARE ZONED OPEN SPACE HAZARD (OH).
Undergrounding of Utilities Across PVDS at McCarrell Canyon (604 x 1204)
City Council Minutes
August 18, 2009
Page 4 of 11
Authorized a change to the McCarrell Canyon Storm Drain construction contract with
Cedro Construction to place the existing overhead utilities underground where they
cross Palos Verdes Drive South at the Tarragon property and authorized the
expenditure of up to $68,000 in budgeted funds to accomplish this work.
Approval of City Council Policy No. 42 Regarding the Form of Staff
Recommendations to the City Council (306)
Adopted City Council Policy No. 42, as amended, regarding the form of staff
recommendations to the City Council.
Revised License Agreement with Verizon Wireless (1601 x 1201)
1) Approved a revised License Agreement with Verizon Wireless for the installation and
maintenance of a telecommunications facility at Robert E. Ryan Park; and,
2) Authorized the Mayor and City Clerk to execute said agreement.
Adoption of Ordinance No. 495 - Code Amendment to Chapter 17.11 "Affordable
Housing" and Chapter 17.96 "Definitions" (Case No. ZON2009-00125) (1801)
ADOPTED ORDINANCE NO. 495, AN ORDINANCE OF THE CITY OF RANCHO
PALOS VERDES, AMENDING CHAPTER 17.11 (AFFORDABLE HOUSING) AND
CHAPTER 17.96 (DEFINITIONS) OF THE CITY'S MUNICIPAL CODE TO CONFORM
TO STATE DENSITY BONUS LAW.
Network Modification Plan — Approval of Agreement Regarding Upgrade of
Primary Firewall (602)
Approved the Consulting Services Agreement with Calsoft for the upgrade of the
primary firewall, including implementation services and staff training.
Register of Demands
ADOPTED RESOLUTION NO. 2009-63, A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF RANCHO PALOS VERDES, ALLOWING CERTAIN CLAIMS AND
DEMANDS AND SPECIFYING FUNDS FROM WHICH THE SAME ARE TO BE PAID.
# # # # # #
REGULAR BUSINESS:
Repeal of Ordinance No. 490 (1804)
City Clerk Morreale reported that late correspondence was distributed prior to the
meeting regarding this item.
City Council Minutes
August 18, 2009
Page 5 of 11
Councilman Long stated that he had previously recused himself per the advice of the
City Attorney from discussion of items related to Terranea due to conflicts of interest.
He reported that those conflicts have now been resolved and after consultation with the
City Attorney, he decided he would be participating in matters related to Terranea in
light of the fact that he has viewed the records of the meetings and stayed informed on
the issues.
City Manager Lehr recused herself from discussion of the item and left the room at 8:17
P.M.
City Attorney Lynch provided a brief staff report regarding Council's consideration to
rescind Ordinance No. 490, which established the City's TOT Rebate Program, and the
side agreement between the developer of Terranea and the City.
Council and staff discussion ensued regarding the following topics: Terranea's financing
issues; possible transfer of the TOT Rebate Program to successor owners if it is not
rescinded; the 60-day time period after the grand opening of the hotel to opt into the
TOT Rebate Program; an explanation of a notice of default; and, the ability to protect
the City.
Bob Lowe, Terranea Resort and Spa, stated that Terranea was unable to opt into the
TOT Rebate Program since the two lenders prevented them from meeting the
necessary conditions.
Mark Wells, Rancho Palos Verdes, spoke in favor of rescinding Ordinance No. 490,
which established the City's TOT Rebate Program.
Councilman Long moved, seconded by Councilman Stern, to: 1) INTRODUCE
ORDINANCE NO. 497, AN ORDINANCE OF THE CITY OF RANCHO PALOS
VERDES, REPEALING ORDINANCE NO. 490 RELATING TO THE CITY'S
TRANSIENT OCCUPANCY TAX REBATE PROGRAM; and, 2) Rescind the City
Council's Approval of the Agreement between the City of Rancho Palos Verdes and
Long Point Development, LLC.
The motion passed on the following roll call vote:
AYES: Long, Stern, Wolowicz, and Mayor Clark
NOES: None
ABSENT: None
RECESS AND RECONVENE:
Mayor Clark called a brief recess from 8:48 P.M. to 9:02 P.M.
PUBLIC HEARINGS:
City Council Minutes
August 18, 2009
Page 6 of 11
Terranea Resort and Spa: ZON2009-00198 (Revision L" to Conditional Use Permit
No. 215, et. al.) [Continued from August 4, 2009] (1804)
City Clerk Morreale reported that this public hearing was continued from August 4,
2009.
Principal Planner Mihranian provided a summary staff report highlighting the three
amendments to the existing conditions of approval, which included the extension of the
condition compliance date for specific conditions from August 1, 2009 to November 1,
2009; the expanded operation of the spa and massage facilities for outcall massages on
the property; and the addition of Condition No. 13A requiring the applicant to reimburse
the City by November 1, 2009, for all of the costs the City incurred in connection with
developing the TOT Rebate Ordinance and program.
City Attorney Lynch stated that Condition No. 13A was being added to Condition No. 13
to clarify that it is the applicant's responsibility to reimburse the City of Rancho Palos
Verdes for 100 percent of the estimated amount of the cost of services provided by the
City Attorney's Office and other consultants that were retained with respect to the due
diligence analysis and preparation of the ordinance regarding the TOT Rebate Program.
She noted the addition of the phrase "to date and hereafter by the City Attorney's Office
and by outside counsel" in two locations in Condition No. 13A, in response to the
applicant's request since the Council may consider the reinstatement of the program
sometime in the future.
Bob Lowe, Terranea Resort and Spa, spoke in opposition to the addition of Condition
No. 13A, noting that it was his belief that the reimbursement to the City would only be
applicable if Terranea Resort opted into the TOT Rebate Program.
Council and staff discussion ensued regarding the recollection of discussions held
during Subcommittee meetings and details of staff reports outlining the responsibility of
Terranea Resort to pay the expenses incurred regarding the TOT Rebate Program.
Mark Wells, Rancho Palos Verdes, stated that he was opposed to outcall massages at
the Terranea Resort, and that Terranea owes the transient occupancy tax to the City of
Rancho Palos Verdes as a matter of law.
Council and staff discussion ensued regarding Condition No. 13A as amended, with the
addition of the phrase "to date and hereafter by the City Attorney's Office and by outside
counsel" in two locations for purposes of clarity; the date for the reimbursement of the
fees to be extended to November 1, 2009 to be consistent with the other conditions;
and, a modification to the language removing the reference to Ordinance No. 490 and
replacing it with "any TOT Rebate Ordinance."
Mayor Clark declared the public hearing closed.
City Council Minutes
August 18, 2009
Page 7of11
Councilman Long moved, seconded by Councilman Stern, to ADOPT RESOLUTION
NO. 2009-64, AS AMENDED BY THE CITY ATTORNEY, A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, APPROVING
REVISION `L' TO CONDITIONAL USE PERMIT NO. 215, ET. AL. BY AMENDING THE
COUNCIL-ADOPTED CONDITIONS OF APPROVAL TO ALLOW: 1) THE EXTENSION
OF THE CONDITION COMPLIANCE DATE FOR SPECIFIC CONDITIONS FROM
AUGUST 1, 2009 TO NOVEMBER 1, 2009, OR PRIOR TO ISSUANCE OF THE FINAL
CERTIFICATE OF OCCUPANCY FOR THE MAIN HOTEL BUILDING, WHICH EVER
OCCURS FIRST; 2) THE ADDITION OF CONDITION 13A REQUIRING THE
APPLICANT TO REIMBURSE THE CITY BY NOVEMBER 1, 2009, FOR ALL OF THE
COSTS THE CITY INCURRED IN CONNECTION WITH DEVELOPING THE TOT
REBATE ORDINANCE AND PROGRAM; THE DUE DILIGENCE THAT WAS
PERFORMED IN CONNECTION WITH EVALUATING THE APPLICANT'S ABILITY TO
REPAY THE TOT TO THE CITY, AND THE CONDITIONS THAT SHOULD BE
IMPOSED ON THE APPLICANT IF THE APPLICANT WERE TO ENROLL IN THE TOT
REBATE PROGRAM; AND, 3) THE EXPANDED OPERATION OF THE SPA AND
MASSAGE FACILITIES FOR "OUTCALL MASSAGES."
The motion passed on the following roll call vote:
AYES: Long, Stern, Wolowicz, and Mayor Clark
NOES: None
ABSENT: None
Filling the Vacancy on the City Council
City Clerk Morreale reported that late correspondence was distributed prior to the
meeting regarding this item.
Mayor Clark provided a brief introduction to the item and the process used to seek
interested applicants to fill the City Council vacancy.
Councilman Long moved, seconded by Councilman Stern, to distribute ballots.
Without object, Mayor Clark so ordered.
Council discussion ensued, after several rounds of unsuccessful ballots, regarding the
applicants who had applied to fill the vacancy on the City Council.
Mayor Pro Tem Wolowicz moved, seconded by Councilman Long, to appoint Ken Dyda
to fill the vacancy on the City Council.
The motion passed on the following roll call vote:
AYES: Long, Stern, Wolowicz, and Mayor Clark
City Council Minutes
August 18, 2009
Page 8 of 11
NOES: None
ABSENT: None
City Clerk Morreale administered the Oath of Office to Councilman Ken Dyda.
Mayor Clark and the Council Members welcomed newly appointed Councilman Ken
Dyda.
Mayor Clark reported that he would be leaving the meeting since he was recused from
the discussion of the next item (Marymount College Facilities Expansion Project) due to
the proximity of his home to the project.
RECESS AND RECONVENE:
Mayor Clark called a brief recess from 10:32 P.M. to 10:43 P.M.
Mayor Clark left the meeting at 10:32 P.M.
Appeal of the Planning Commission's Conditional Approval of the Marymount
College Facilities Expansion Project: Conditional Use Permit No. 9 — Revision
"E," Grading Permit, Variance, Minor Exception Permit, Master Sign Permit and
Environmental Assessment(Case No. ZON2003-00317) - 30800 Palos Verdes
Drive East (1203)
City Clerk Morreale reported that notice of the public hearing was duly published, written
protests received and included in the staff report and late correspondence, and there
were 21 requests to speak on the item.
Mayor Pro Tem Wolowicz introduced the item and explained that there would be a
second meeting concerning the Marymount College Facilities Expansion Project on
Saturday, September 12, 2009. He stated that staff would be presenting a staff report
this evening for up to 45 minutes, to be followed by questions from Council regarding
the staff report, to be followed by speakers who will not be available on Saturday,
September 12, 2009 for the continued meeting. He noted that the speakers would be
granted two minutes each to speak regarding the item.
Mayor Pro Tem Wolowicz and Councilmen Stern, Long and Dyda disclosed that they
had met with or received information from representatives of Marymount College and
separately with representatives of the appellants, the Concerned Citizens
Coalition/Marymount Expansion (CCC/ME).
Principal Planner Mihranian provided a staff report regarding the Marymount College
Facilities Expansion Project as approved by the Planning Commission; the points of the
appeal and staffs responses to the points raised; and, an overview of staffs
recommendations that differ from the Planning Commission approval.
City Council Minutes
August 18, 2009
Page 9 of 11
Mayor Pro Tern Wolowicz declared the public hearing open.
Craig Whited, Rancho Palos Verdes, stated that Marymount has been a good neighbor,
but the college has grown substantially and spoke in opposition to the expansion of the
college. He stated that there should be a split campus, with the academic campus and
living campus separate; the athletic facility should be built on the living campus, and the
field retained where it was presently; and, the school should operate during the day and
remain quiet at night.
Gordon Doolin, Rancho Palos Verdes, spoke in opposition to the Marymount College
Facilities Expansion Project due to the very unstable nature of the geology and soils in
the area.
Paula Petrotta, Rancho Palos Verdes, spoke in opposition to the Marymount College
Facilities Expansion Project for the following reasons: traffic, noise, addition of 58,000
square feet, a retractable 10 foot chain link fence, modular buildings, the movement of
tens of thousands of construction materials up and down a dangerous switchback, and
eight years of construction.
John Matthews, Rancho Palos Verdes, spoke in opposition to the Marymount College
Facilities Expansion Project, noting it was an infringement on the life quality of every
citizen in the local community area. He reported that he had witnessed numerous
accidents in the area and recommended the project be relocated off of the hill.
Councilman Long moved, seconded by Councilman Dyda, to continue the public
hearing to Saturday, September 12, 2009, at 9:00 A.M. at Hesse Park, or other location,
to be determined and noticed accordingly.
Without objection, Mayor Pro Tem Wolowicz so ordered.
CITY COUNCIL ORAL REPORTS:
Councilman Long moved, seconded by Councilman Stern, to defer the City Council Oral
Reports to the next meeting.
Without objection, Mayor Pro Tern Wolowicz so ordered.
COUNCIL DISCUSSION & SUGGESTION OF FUTURE AGENDA ITEMS:
Councilman Dyda moved, seconded by Councilman Stern, to defer this item to the next
meeting.
Without objection, Mayor Pro Tern Wolowicz so ordered.
CLOSED SESSION REPORT:
City Council Minutes
August 18, 2009
Page 10 of 11
City Attorney Lynch reported that with respect to the potential purchase of open space,
the Council discussed the potential land purchase of the York property and gave
direction to staff regarding negotiation of the price and terms of payment, 4-0, with
Councilman Dyda not participating since he was not yet appointed to the Council.
ADJOURNMENT:
At 12:08 A.M., Mayor Pro Tem Wolowicz adjourned the meeting. op
.2 Mayor
Attest:
i
City Clerk
W:\City Council Minutes\2009\20090818 CC MINS.doc
•
City Council Minutes
August 18, 2009
Page 11 of 11